E-commerce Taxation In South Korea

E-commerce has had a major impact on the economy of South Korea. Increasingly, business in South Korea is being conducted through the Internet. Hence taxing e-commerce has become indispensable for the economic progress of the state. In South Korea value added tax is levied on e-commerce at the standard rate of 10%. Electronic merchants are required to collect and remit applicable VAT for all of their transactions.

The following questions have been addressed in this article:

How is the tax computed?Who is a taxpayer under the Korean VAT system?